Bloomberg News

U.S. Commodities Day Ahead: Copper Declines on Recession Concern

September 29, 2011

Sept. 29 (Bloomberg) -- The following are the top stories on metals, agriculture and shipping.

TOP STORY:

Copper Declines on Concern Possible Recession Will Damp Demand

Copper dropped for a second day in London on concern a global recession will affect demand for industrial metals.

COMMODITY EXCLUSIVES:

BTA Seeks $1 Billion From Farmer Amid Fight With Ex-Chairman (1)

BTA Bank is suing a farmer from a “distant village” in Belarus to wrest control of assets it alleges were pilfered by former management before the Kazakh lender defaulted on $12 billion of debt two years ago.

OMV Pays 58 Million Euros to Boost Stake in Tunisian Concession

OMV AG, central Europe’s biggest energy company, paid 58 million euros to boost its stake in the south Tunisian Durra concession, the company said.

LME Says ‘Expressions of Interest’ Exceed 10, Board to Meet (1)

The London Metal Exchange, the 134 year-old bourse handling 80 percent of global trade in metals futures, said it got more than 10 “expressions of interest” and may recommend a bid to shareholders as early as March.

Denmark Creates Rescue Fund for Crisis-Hit Farming Industry (1)

Denmark’s farming council is planning to set up a fund to prevent the country’s agricultural industry from collapsing as bank credit dries up.

Notore Chemical of Nigeria Plans Initial Public Offering in 2012

Notore Chemical Industries Ltd. of Nigeria, a producer of fertilizer, plans to raise at least $300 million “sometime next year” in an initial public offering to finance its expansion, an official said.

Rare Earths Fall as Toyota Develops Alternatives: Commodities

Rare-earth prices are set to extend their decline from records this year as buyers including Toyota Motor Corp. and General Electric Co. scale back using the materials in their cars and windmills.

Saudi Crude for Fuel Oil Nearing 22-Month High: Energy Markets

Saudi Arabian heavy crude sold to Asia may be headed for its highest level in 22 months relative to benchmark Middle East grades as the kingdom capitalizes on growing demand for fuel oil.

Billionaire Potanin May Seek Norilsk Control After Buyback (1)

Billionaire Vladimir Potanin’s Interros Holding Co. may seek control of OAO GMK Norilsk Nickel after a $4.5 billion buyback and stock cancellation, gaining the upper hand in a shareholder dispute with United Co. Rusal.

INDUSTRIAL METALS:

Tin Smelters in Indonesia Load Shipments Ahead of Export Halt

Eight tin smelters in Indonesia’s Bangka island may load about 2,000 metric tons of refined metal before an export suspension comes into force on Oct. 1, with no shipments permitted after that date, industry executives said.

MINING:

Freeport McMoRan’s Peru Copper Miners to Strike Over Wages (1)

Freeport-McMoRan Copper & Gold Inc.’s copper miners in Peru will go on strike today after wage talks collapsed, their third stoppage this month, while workers in Indonesia will resume negotiations, union officials said.

Alumina Gains on Speculation Company May Be Takeover Target (1)

Alumina Ltd., partner in the world’s biggest producer of the material used to make aluminum, rose the most in two years on speculation that recent price falls have made the company a takeover target.

PRECIOUS METALS:

Gold Gains as Slide Below $1,600 Spurs Physical, Investor Demand

Gold gained in London as the metal’s drop below $1,600 an ounce boosted physical purchases and as investors sought a protection of wealth from Europe’s debt woes.

AGRICULTURE:

Wheat Gains as Dry U.S. Plains Weather May Cut Winter Planting

Wheat gained, reversing earlier losses, on speculation that persistent dry weather in the U.S. southern Great Plains will curb planting of the winter crop and reduce production.

Palm Oil Declines on Concern Global Slowdown May Hurt Demand

Palm oil dropped to the lowest level in almost a year, heading for a third quarterly decline, on concern that Europe’s sovereign-debt crisis will hurt global growth and reduce demand for commodities.

Coffee Retreats as Vietnam’s Crop May Be a Record; Cocoa Slides

Robusta coffee fell for a second day in London on speculation a record crop in Vietnam, the world’s largest producer of the variety, will weigh on the price. White sugar and cocoa slid.

Rubber Drops to 13-Month Low as Europe Crisis May Stall Recovery

Rubber tumbled to a 13-month low, heading for the worst quarterly loss since 2008, as concern grew that Europe’s debt crisis may deepen, sending global economies into a recession and damping raw-material demand.

Russia Grain, Pulses Harvest at 86.4 Million Tons, Ministry Says

Russian farmers harvested 86.4 million metric tons of grains and pulses as of yesterday, about 46 percent more than a year earlier, the Agriculture Ministry said.

China Seen Needing ‘Huge Effort’ to Meet Increasing Corn Demand

China, the world’s second-biggest user and producer of corn, will need a “huge effort” to meet growing demand as consumers eat more meat products, the Ministry of Agriculture said.

SHIPPING:

Piracy Victims to Be Helped by Humanitarian Effort in London

The Maritime Piracy Humanitarian Response Programme was formed to help seafarers and their families cope with trauma from pirate attacks.

Shell Said to Stop Singapore Refinery Terminal Operation on Fire

Royal Dutch Shell Plc halted all oil-terminal operations at its Pulau Bukom refining complex in Singapore after a fire broke out yesterday, according to a person familiar with the matter, who declined to be identified because the information is confidential.

ECONOMIES:

Yuan Drop Spurs Record Slide in Dim Sum Bonds: China Credit

Yuan-denominated bonds in Hong Kong are headed for a record monthly loss, erasing gains for the year, as a worsening outlook for the global economy fuels concern China will slow the pace of its currency’s appreciation.

China Economic Growth Seen Less Than 5% by 2016 in Global Poll

Most global investors predict Chinese growth will slow to less than half the pace sustained since the government began dismantling Mao Zedong’s communist economy three decades ago, a Bloomberg poll indicated.

Europe Meltdown Converging With Slump Seen by Investors in Poll

Global investors anticipate Europe’s debt crisis leading to an economic slump, a financial meltdown and social unrest in the next year with 72 percent predicting a country abandoning the euro as a shared currency within five years, a Bloomberg survey found.

Germany Backs Euro Rescue Fund to Set Stage for Next Steps

German lawmakers approved an expansion of the euro-area rescue fund’s firepower, freeing the way for European officials to focus on what next steps may be needed to stem the debt crisis.

OTHER MARKETS:

Euro Rises as German Lawmakers Approve Expansion of Bailout Fund

The euro rose toward a one-week high versus the dollar as Germany’s lower house of parliament approved the expansion of a bailout fund for debt-stricken euro-area nations to help contain the sovereign-debt crisis.

Sony Says It Expects ‘Huge Impact’ on Profit From Euro Slump (2)

Sony Corp., Japan’s largest exporter of consumer electronics, said it expects a “huge impact” on earnings from the weaker euro, underscoring the company’s vulnerability to the European debt crisis.

European Stocks Rise as Germany Backs Enhanced Euro Rescue Fund

European stocks increased for the fourth time in five days after German lawmakers backed an enhanced euro-region rescue fund. Asian shares and U.S. index futures advanced.

IPOs Shelved at Record Pace Globally as Offer Pipeline Balloons

Companies canceled or postponed $8.9 billion in initial public offerings in the third quarter as stocks plunged, putting the market on pace to set a record for pulled deals.

Oil Advances on Bets Europe Rescue Plan Will Temper Debt Crisis

Oil climbed in New York, paring its biggest quarterly drop since 2008, on speculation that an expanded European bail-out fund, approved by German lawmakers today, will support economic growth and fuel demand.

Turkish Government Studying Local Car Proposals, Ergun Says

Turkey’s government will study proposals from the Automotive Manufacturers Association on ways to develop a local car brand, Industry Minister Nihat Ergun said.

Turkish Government, Opposition Agree on Constitution Priority

Turkey’s government and the main opposition party agreed that a new constitution should be a legislative priority for the parliament when it reconvenes Oct. 1, Omer Celik, leader of the government’s negotiating team said.

SPORTS:

QPR Co-Owner Bhatia Keen to Sign David Beckham: Soccer Roundup

The following is a roundup of soccer stories from U.K. newspapers, with clickable links to the Web.

Billionaire’s Anzhi Soccer Club Names Roberto Carlos as Coach

Billionaire Suleiman Kerimov’s Anzhi Makhachkala soccer club named Brazil’s former World Cup-winning defender Roberto Carlos as its coach.

FIFA Looks at Soccer Fund Run by Ex-Chelsea CEO, Ronaldo’s Agent

Soccer’s ruling body is examining an investment fund set up by former Chelsea Chief Executive Officer Peter Kenyon to see if it violates the sport’s rules, according to a FIFA official who declined to be identified.

--Editors: John Deane, Sharon Lindores

To contact the editor responsible for this story: Stuart Wallace in London at swallace6@bloomberg.net


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